The Latest on SunPower’s Bankruptcy: Recent Updates
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SunPower filed for Chapter 11 bankruptcy on Aug. 5 after months of financial struggles. With over 500,000 customers, the solar giant has been a major player in the industry. Its closure likely has many customers worried about warranty coverage, loan terms and continued service. Here’s the latest.
August 5, 2024 | Bankruptcy Documents
SunPower announces Chapter 11 bankruptcy, selling Blue Raven
Solar company SunPower filed for bankruptcy today, leaving more than half a million customers questioning which company, if any, will service their solar panels and how the bankruptcy will affect their warranties and loans.
SunPower plans to sell its assets before winding down its operations, according to the announcement. It is also considering selling some of its assets to Complete Solaria, a residential solar installer. The sale will include three of SunPower’s subsidiaries, including Blue Raven Solar, a major installer of residential solar panels.
Whether the new company will change customers’ contracts remains to be seen.
“There is no guarantee Blue Raven’s buyer will honor existing contracts and warranties for customers,” said Ilyse Homer, a partner and team manager of the business reorganization team at Miami law firm Berger Singerman. “Any obligations surrounding Blue Raven’s purchase will need to be established in the agreement and approved by the bankruptcy court.”
SunPower launched as a Silicon Valley startup in 1985 and grew to over half a million customers by 2023. However, the company’s grip on the market began to loosen when it ended its 2023 fiscal year with a net income loss of nearly $250 million, despite adding nearly 159,000 more residential customers that year.
The company restated its financials for the 2022 fiscal year and three quarters of 2023. It closed its installation and direct sales operations in April 2024.
August 5, 2024 | Letter to Customers
In letter to customers, SunPower says it can’t service systems
SunPower said today that its installed systems shouldn’t experience disruptions; however, in a separate message to customers, SunPower stated it was “unable to service” systems, referring to repairs and maintenance requests.
The company’s message to customers also stated that it is "diligently working on an agreement with a service provider" to take over its customer support for solar panel.
August 5, 2024 | Letter to Customers
SunPower customers can hire other companies for repairs, but it might affect their warranties
Bankrupt solar provider SunPower has announced that customers who purchased a SunPower solar energy system with cash or a loan can hire another company for repairs or maintenance but was unclear about whether doing so might affect manufacturer warranties.
August 7, 2024 | Company Spokesperson
Maxeon confirmed the SunPower bankruptcy will not affect its manufacturer warranties
Maxeon Solar Technologies, the company that spun off from SunPower in 2020, said in a statement to NerdWallet that its warranties are unaffected by SunPower's bankruptcy.
"We were the innovation engine for SunPower Corp., but since the spin off, Maxeon has been a separate, publicly traded company, operating independently and with separate management," Maxeon CEO Bill Mulligan said in a post on the company's website.
The company reiterated its statement on X, formerly known as Twitter.
August 7, 2024 | Company Press Release
SunPower hires Launch Servicing to handle lease contracts and billing
In a message to customers, SunPower said it is partnering with Launch Servicing for continued lease billing and contract support. Launch Servicing identifies itself as a debt collection company on its website; however, the company confirmed...
